No More Guessing Games on Price: Honda & the New CARS Act

Popular Honda models don’t always sit on the lot long, and high demand has historically meant some buyers see prices creep above MSRP once they’re at the table. California’s new CARS Act, which took effect October 1, 2026, puts a stop to that kind of guessing game.

The Advertised Price Has to Be the Real Price

Under the CARS Act, dealers can no longer advertise a manufacturer’s suggested price and then build in markups or add-ons once you’re sitting down to negotiate. The total price you see in an ad or hear in your first conversation with us has to include any dealer markup and pre-installed add-ons already, with only three things allowed on top of that:

• Government taxes
• Government fees
• A documentation fee

That means for in-demand models like the CR-V, Civic, or Accord, the number you see is a lot closer to the number you’ll actually pay, before you ever walk through our doors.

Add-Ons Have to Earn Their Place

The law also stops dealers from charging for add-ons that don’t offer a customer real value, protection packages that don’t apply to your vehicle, or coverage that just duplicates what your Honda’s factory warranty already includes. If something’s offered to you, it has to actually benefit you.

Read the full CARS Act guide for everything else the law covers, including the new 3-day cancellation right on used vehicles and how disclosures now apply across financing, leasing, and cash purchases.

Common Questions

Does this mean I won’t ever pay more than the advertised price?

Taxes, government fees, and a documentation fee can still be added, those aren’t part of the vehicle’s price itself. But dealer markups and add-ons have to already be reflected in the advertised total price, not added as a surprise later.

Why did some Honda models see prices above MSRP in the past?

High demand and limited supply led some dealers nationally to add market adjustments on top of MSRP. The CARS Act doesn’t ban charging above MSRP outright, but it does require that whatever the real total price is, it has to be disclosed upfront in advertising, not sprung on you at the table.

Does this apply to used Hondas too?

Yes, the price transparency and add-on rules apply to new and used vehicles alike.